Professional Documents
Culture Documents
Platforms
Data as Essential Facility
Inge Graef
Monograph published by Kluwer Law International in its International Competition Law Series
in October 2016 (see here)
WELFARE EFFECTS OF DATA COLLECTION AND USE - The significance of data for digital markets
and digital business models plays a key role in this regard. Innovative products and services are
now offered online, which enables providers to collect information about the profile, behaviour
and interests of users. The knowledge that can be extracted from this data forms the basis for the
competitiveness and growth of individual players in digital markets. Datasets built on the basis
of the information that individuals disclose when using online services have become an
economic asset in the digital economy.2 In general, the increasing collection and use of data has
positive welfare effects. The greater knowledge about the interests of users may lead to better
quality of services and enable companies to cut costs, for example, because of more precise
advertisement targeting possibilities. However, the increased collection and use of data can also
result in negative welfare effects. In particular, having control over and being able to analyse
large volumes of data may form a source of power for incumbent market players.3
ROLE OF COMPETITION LAW - It is instructive to note that as early as 2010 Tim Berners-Lee,
known as the inventor of the world wide web, identified several trends that in his view threaten
the internet as we know it. One of the threats he referred to concerns the walling off by large
social networking sites of information posted by users from the rest of the web. By assembling
information disclosed by users into databases and reusing the information to provide value-added
services only within their own sites, providers create closed silos that may, in the view of
Berners-Lee, lead to the fragmentation of the web and threaten its existence as a single, universal
information space.4 Such developments also raise questions about the role of competition law in
addressing potential forms of abuse of dominance relating to data. In this regard, the Competition
Commissioner recognised in a January 2016 speech that there is scope for competition
1
MONOPOLKOMMISSION, ‘Competition policy: The challenge of digital markets’, Special report No. 68, July 2015,
par. S3 and S4, available at http://www.monopolkommission.de/images/PDF/SG/s68_fulltext_eng.pdf.
2
WORLD ECONOMIC FORUM, ‘Personal Data: The Emergence of a New Asset Class’, January 2011, available at
http://www3.weforum.org/docs/WEF_ITTC_PersonalDataNewAsset_Report_2011.pdf.
3
MONOPOLKOMMISSION, ‘Competition policy: The challenge of digital markets’, Special report No. 68, July 2015,
par. S3 and S10.
4
T. BERNERS-LEE, "Long Live the Web: A Call for Continued Open Standards and Neutrality", Scientific American
December 2010, vol. 303, no. 6, (80).
ESSENTIAL FACILITIES DOCTRINE - Against this background, the thesis explores how existing
competition tools and concepts can be applied to data-related competition concerns in digital
markets. The key focus of the thesis is on potential refusals of dominant firms to give access to
data on online platforms such as search engines, social networks and e-commerce platforms.
Even though the analysis may also be applicable to other online services, particular attention is
paid to the three latter types of online platforms because of the importance of data for their
business models and the fact that they are commonly referred to as ‘gatekeepers’ of the internet.
In line with its significance in the digital economy, data is becoming a necessary input of
production for a variety of products and services competing with or complementary to the
services offered by incumbent providers of online search engines, social networks and e-
commerce platforms. By refusing to share information with potential competitors or new
entrants, incumbents may limit effective competition to the detriment of consumers. In this
context, the question rises whether the denial of a dominant firm to grant competitors access to
its dataset could constitute a refusal to deal under Article 102 of the Treaty on the Functioning of
the European Union (TFEU) and lead to competition liability under the so-called ‘essential
facilities doctrine’. This doctrine attacks a particular form of exclusionary anticompetitive
conduct by which a dominant undertaking refuses to give access to a type of infrastructure or
other form of facility to which rivals need access in order to be able to compete.
MAIN RESEARCH QUESTION - The main research question of the thesis revolves around the issue
of whether and to what extent data may constitute an essential facility. While scholars have
pointed to the probability of competitors asking access to data stored on online platforms,6 it is
not clear how an obligation of dominant firms to give access to the data on their platforms would
fit with earlier decisions and judgments. The essential facilities doctrine has in the past been
applied to physical infrastructures, including ports and tunnels, as well as to intangible assets
protected by intellectual property rights. Because of the particular nature of data collected by
providers of online platforms and the new business models that are employed, potential refusals
to share data give rise to new competition concerns and may require a different analysis under
the essential facilities doctrine. By relying on a variety of approaches, the thesis contributes to
academic and policy discussions about how data-related competition concerns should be
addressed under competition law.
5
Speech of Competition Commissioner Vestager, ‘Competition in a big data world’, DLD 16 Munich, 17 January
2016, available at https://ec.europa.eu/commission/2014-2019/vestager/announcements/competition-big-data-
world_en.
6
D.S. EVANS, "Antitrust Issues Raised by the Emerging Global Internet Economy", Northwestern University Law
Review Colloquy 2008, vol. 102, (285), p. 304; C.S. YOO, "When Antitrust Met Facebook", George Mason Law
Review 2012, vol. 19, no. 5, (1147), p. 1154-1158; S.W. WALLER, "Antitrust and Social Networking", North
Carolina Law Review 2012, vol. 90, no. 5, (1771), p. 1799-1800.
APPROACH OF PART I - Part I outlines the economic characteristics of search engines, social
networks and e-commerce platforms, including their multi-sided nature, with the aim of
analysing how relevant markets can be defined and dominance of providers of online platforms
can be assessed. A law and economics methodology is used to this end. Findings from economic
literature about multi-sided businesses are integrated into the analysis of how existing
competition tools can be applied to online platforms. In this regard, guidance is taken from
previous decisions of the European Commission and judgments of the EU Courts as well as, to a
more limited extent, from relevant cases in other jurisdictions. Attention is also paid to economic
literature examining the relationship between competition and innovation, and to business
literature that distinguishes between different types of competition and innovation. In line with
the role of data in identifying possible future products and services for which consumer demand
exists, it is proposed in part I to take a more forward-looking approach to competition analysis in
merger and abuse of dominance cases. In the context of market definition and the assessment of
APPROACH OF PART II - Part II revolves around the issue of whether and to what extent data forms
a necessary input for products and services to be launched by competitors of a dominant online
platform provider. To answer this question, a normative analysis of the essential facilities
doctrine is undertaken resulting in a proposed framework that may lay the ground for a more
coherent application of the doctrine in future cases. Next to refusals to deal, two other potential
competition problems involving access to data and online platforms can be identified, namely
restrictions on data portability and interoperability. Before engaging in an in-depth analysis of
the essential facilities doctrine, attention is paid to these possible competition issues as well as to
the question of whether and to what extent user data as collected by providers of online platforms
is protected under data protection and intellectual property regimes. Even though the analysis
mainly focuses on EU competition law, the development of the essential facilities doctrine under
US antitrust law is also discussed because the concept originated at that side of the Atlantic. In
this regard, relevant EU and US decision-making practice, case law, policy documents and
literature are studied. In addition, by building on the findings from the business literature
analysed in part I, the economic trade-off to be made in refusal to deal cases is discussed. While
this trade-off remains a choice between two valid policy options (i.e. to intervene or not to
intervene), a need for a more coherent application of the essential facilities doctrine that is in line
with the underlying economics can be identified. To this end, insights are drawn from the
economic trade-off which form the principles on which a proposed framework is built for the
application of the essential facilities doctrine more generally. This part of the thesis contributes
to competition law scholarship by engaging in an extensive analysis of the law and economics
behind the essential facilities doctrine. Afterwards, it is analysed how the essential facilities
doctrine can be applied to potential refusals of dominant firms to give access to data on online
platforms. In that context, regard is also had to the role of data as a competitive advantage or
entry barrier in digital markets and to market definition and dominance with respect to data.
APPROACH OF PART III - Because the data to be shared by a dominant provider of an online
platform may also include personal data, possible limitations that data protection legislation puts
to the imposition of a duty to deal under competition law also have to be assessed. In addition,
dominant firms may rely on their obligations under data protection law as an objective
justification for refusing to supply data to competitors. Against this background, the role of data
protection interests in competition enforcement is explored in part III on the basis of a doctrinal
legal research methodology that relies on an analysis of relevant EU legislation, policy
documents, case law and literature in the field of data protection and competition law.
Developments in the decision-making practice of the US Federal Trade Commission and in US
GENERAL OBSERVATION - Before discussing the outcomes of the research more specifically, it is
worthwhile to make one general observation here. What follows from the analysis in each part of
the thesis is that existing competition concepts are still fit for purpose, provided that their
application is adapted to the peculiarities of online platforms. Even though the necessary tools
are available, it is submitted that competition authorities and courts have to be willing to employ
them in such a way as to ensure that the competition analysis reflects the competitive reality of
the markets in which providers of online platforms compete. For each dimension of the threefold
relevance of data to competition enforcement, a lack of willingness can be identified on the part
of the European Commission and the EU Courts to use existing concepts and tools in a way
enabling them to reliably assess possible data-related competition issues. In this context, the
thesis provides recommendations to these institutions in each of the three parts for bringing the
application of competition law in line with the demands of dynamic markets and for adequately
protecting consumer welfare in the online environment. The outcomes of the research in the
three parts and the associated recommendations are now discussed in detail in the next sections.
SEPARATE RELEVANT MARKETS FOR EACH SIDE OF AN ONLINE PLATFORM - With regard to market
definition, the approach of the Commission in the Google abuse of dominance case and the
Facebook/WhatsApp merger to define separate relevant markets for the user and advertiser side
of an online platform seems most appropriate. If only one relevant market for the entire platform
would be defined, it is not possible to consider potential competitive constraints imposed by
businesses that are not active on both sides of the platform but only compete with the provider on
one side. One should note in this regard that multi-sided platforms may also compete with one-
sided undertakings and with multi-sided businesses that have an overlap with the respective
platform on only one side. These forms of competitive pressure can only be taken into account
when defining separate relevant markets for the user and advertiser side of the platform.
POTENTIAL MARKET FOR DATA - A specific recommendation that has been made in part I in this
regard is for competition authorities and courts to define and analyse a potential market for data
in addition to the narrow relevant product markets for the services provided to users and
advertisers. This would result into a more forward-looking approach to competition analysis. By
considering possible competitive constraints in a potential market for data, the significance of
data for the development of new products and services can be taken into account. In this context,
it is proposed to rely on the existing notion of competition in innovation as developed within the
framework of Article 101 TFEU and to regard user data as a specialised asset in analogy to the
EU Horizontal Guidelines. Even if user data is not traded with third parties and no supply and
demand for data can be identified under current competition law standards, it is submitted that it
would still be desirable for competition authorities and courts to define a potential market for
data in order to make competition analysis more conducive to innovation.
WIDER RELEVANCE OF THE ANALYSIS - The analysis of a potential market does not only seem
desirable for data-related competition issues but also for other cases in the context of digital
INDIRECT COMPETITION - The usual scenario in essential facilities cases concerns the situation in
which a market player needs access to an input for a product or service to be launched in a
downstream market in indirect competition with the dominant firm. An example in the context of
online platforms would be the use of data for the introduction of a statistical or analytics service
that does not stand in direct competition to the services that the provider offers to users and
advertisers on its own platform. The PeopleBrowsr v. Twitter case that occurred in the United
States forms an illustration of such a scenario of indirect competition. PeopleBrowsr is a
company that analyses Twitter data in order to sell information to clients about, for example,
consumer reactions to products and services and identification of the Twitter users who have the
most influence in certain communities. Twitter had informed PeopleBrowsr (and several other
third-party developers) that as from 30 November 2012 it would be losing its full access to the
Twitter ‘firehose’, which is the entirety of tweets that are passing through Twitter on a second-
by-second basis. Instead of having direct access to the Twitter data, PeopleBrowsr would have to
approach one of Twitter’s certified data resellers to gain access to the required data.
PeopleBrowsr argued that it needed full firehose access to be able to deliver its services to
DIRECT COMPETITION - The other scenario involves the use of data as an input to launch a form of
direct competition with the dominant firm and to provide a rival search, social network or e-
commerce platform to users and advertisers. Data forms an important input for online services
because it can be deployed as a means to improve, on the one hand, the possibilities of
advertisers to engage in targeted advertising and, on the other hand, the relevance of,
respectively, search results, purchase suggestions and social interactions. The imposition of a
duty to deal would have the effect of enabling an access seeker to compete with the provider at
issue in a direct and horizontal way by introducing its own platform. If an input is regarded as
constituting the upstream market even though it is not marketed independently, a successful
access seeker is able to compete with the dominant undertaking in the only ‘real’ market at issue.
7
PeopleBrowsr, Inc. et al. v. Twitter, Inc. (PeopleBrowsr), No. C-12-6120 EMC, 2013 WL 843032 (N.D. Cal.
March 6, 2013), at 1.
TRADE-OFF IN ESSENTIAL FACILITIES CASES - The trade-off to be made in essential facilities cases
amounts to a choice between giving competitors access to the required input, which would
enable them to create products complementary to that of the dominant firm, or denying access as
a result of which competitors would be mainly incentivised to develop substitutes competing
with the product of the dominant firm. While the first option provides stronger incentives for
10
NEED FOR MORE TRANSPARENCY - The framework proposed in part II aims to contribute to the
state of the art by providing a way to apply this economic trade-off in practice and to make the
application of the essential facilities doctrine more coherent. Taking the trade-off fully into
account would require a tool that differentiates on the basis of the type of competition or
innovation that is at risk in a particular market situation. The new product requirement is by its
very nature capable of implementing such an exercise under the essential facilities doctrine
because it determines what level of innovativeness the product or service to be introduced by the
access seeker has to bring about. The new product condition requires access seekers to point to a
new product that they would like to introduce once given access to the requested input. Even
though the new product condition forms an adequate tool to make the trade-off between
competition for and competition in the market more transparent in essential facilities cases, the
Commission and the EU Courts have so far been unwilling to explicitly consider incentives for
competition for the market in decisions and judgments. While it is a valid choice of the
Commission and the EU Courts to favour competition in the market, this does not mean that
incentives for competition for the market should be disregarded. In order to make the trade-off
visible, it is submitted that incentives for competition for the market should be openly analysed
in essential facilities cases even if preference is given to competition in the market.
11
12
DISRUPTIONS OF SUPPLY - Apart from absolute refusals to deal, where the requested input has not
been marketed before, another scenario that can be distinguished is that of a disruption of
existing levels of supply. Disruptions of supply have a behavioural element that is absent in
absolute refusals to deal where the ground for competition intervention is more structural and
does not lie in the conduct of the dominant firm but in the fact that it holds an input which is
essential for competition on a downstream market. Yet, the same legal standards have been
applied to absolute refusals to deal and disruptions of supply in Microsoft. While the case
involved a termination of supply of previous levels of interoperability information to Microsoft’s
competitors in the market for work group server operating systems, the behaviour was
13
THREE-STEP FRAMEWORK FOR DISRUPTIONS OF SUPPLY - A first step may involve establishing a
voluntary prior course of dealing for an indispensable input between the dominant undertaking
and the existing customer. If the dominant undertaking has not engaged in a prior course of
dealing on a voluntary basis, the predatory nature of the disruption of supply cannot be
established because there is no presumption that the dominant undertaking profited from the
course of dealing and decided to forego these profits by terminating the business relationship.9 A
second step for determining whether a disruption of supply amounts to a violation of the EU
prohibition on abuse of dominance would involve establishing the anticompetitive nature of the
8
See Verizon Communications v. Law Offices of Curtis V. Trinko, LLP (Trinko), 540 U.S. 398 (2004), at 409.
9
In Trinko, the US Supreme Court argued that in the absence of a voluntary course of dealing ‘the defendant’s prior
conduct sheds no light upon the motivation of its refusal to deal-upon whether its regulatory lapses were prompted
not by competitive zeal but by anticompetitive malice’ (Verizon Communications v. Law Offices of Curtis V. Trinko,
LLP (Trinko), 540 U.S. 398 (2004), at 409).
14
ROOM FOR A NEW APPROACH - While the European Commission and the General Court expressed
the view that disruptions of supply should not be treated differently than absolute refusals to deal
in, respectively, the Guidance Paper on exclusionary conduct under Article 102 TFEU and the
Microsoft case, the Court of Justice still appears to distinguish with regard to the legal thresholds
applicable to the two types of refusal to deal. The Sot. Lélos v. GlaxoSmithKline case, a
preliminary ruling involving a refusal of a dominant pharmaceutical company to meet orders of
existing customers in full with the aim of restricting parallel trade, does offer room for a different
treatment of disruptions of supply. In its judgment, the Court referred to the Commercial
Solvents and United Brands judgments and not to the Magill and IMS Health judgments in which
the stricter essential facilities test was applied. This may indicate that the Court of Justice still
regards the Commercial Solvents reasoning as the applicable law for disruptions of supply. Since
the Microsoft judgment of the General Court was not appealed, the Court of Justice has not been
given the opportunity to rule on the fact that the lower court applied the stricter essential
facilities test to Microsoft’s termination of the previous level of disclosures of interoperability
information. Its statements in the Sot. Lélos v. GlaxoSmithKline judgment may imply that the
Court of Justice does not agree with the approach of the General Court in Microsoft and is of the
view that the essential facilities test of Magill and IMS Health should not be applied for
determining the abusive nature of disruptions of supply. Instead, disruptions of supply may be
assessed for their predatory character as the three-part test put forward here aims to do.
15
DATA AS ESSENTIAL FACILITY - When assessing the abusive nature of refusals to give access to
data, attention has to be paid to the characteristics that set data apart from other assets previously
being considered under the essential facilities doctrine. These features include its inherently non-
rivalrous nature that may, however, be lost when the data is made exclusive by way of contracts
or by protecting it under the sui generis database right and trade secret law, and the possible
personal nature of data as a result of which the EU data protection regime would become
applicable.
INDISPENSABILITY OF DATA - One of the main issues for the application of the essential facilities
doctrine will be to establish the indispensable nature of the requested data. In this regard, the
question has to be answered whether the data is objectively necessary for being able to compete
on the downstream market and whether economically viable substitutes are available. Even
though the statements of the Commission in the Google/DoubleClick,
Telefónica/Vodafone/Everything Everywhere and Facebook/WhatsApp mergers may indicate that
data of incumbents will not easily be considered indispensable for providing targeted advertising
services, this may be different with regard to the use of data for offering services of good quality
on the user side in the form of, for example, the relevance of search results in online search
engines, suggested social network interactions and purchase suggestions in e-commerce
platforms. For the provision of these functionalities to users, a specific type of data is needed that
may not be readily available on the market. For example, if the specific data needed to operate a
search engine of good quality can only be obtained through serving customers, other data that is
16
ANSWERING THE RESEARCH QUESTION - As an answer to the main research question, it can be
concluded from the analysis in part II that the essential facilities doctrine can be adequately
applied to potential refusals to give access to data on online platforms as long as the peculiarities
of data are taken into account. Whether new regulation is necessary beyond the application of the
essential facilities doctrine under Article 102 TFEU, is essentially a policy issue. A regulatory
intervention may be considered desirable in situations where horizontal competition in a market
is limited due to external market failures. Reference can be made here to Argenton & Prüfer’s
proposal to require all search engine providers to share data on search queries so that market
players only compete with their algorithms and not on the basis of the information they hold
about previous searches on their platform.11 It would, however, be challenging to adequately
devise such a new form of regulation. Apart from problems relating to the practical
implementation and enforcement of such an obligation, it may prove difficult to establish to
which entities the duty to share data should apply. In this regard, it has to be kept in mind that
search functionality also plays a role in social networks. E-commerce platforms, in their turn, can
be regarded as vertical search engines. As a result, it seems arbitrary to limit the scope of
application of a potential data-sharing scheme to a particular class of market players. In addition,
the expected short-term increase of competition in the market has to be weighed against possible
negative effects of a regulatory intervention on competition and innovation in the long term.
Moreover, there are strong reasons to adhere to the case-by-case assessment under Article 102
TFEU. In particular, the application of the essential facilities doctrine enables competition
authorities and courts to take into account all specific factual circumstances. Since the extent to
10
Autorité de la concurrence, Décision n° 14-MC-02 du 9 septembre 2014 relative à une demande de mesures
conservatoires présentée par la société Direct Energie dans les secteurs du gaz et de l’électricité, available at
http://www.autoritedelaconcurrence.fr/pdf/avis/14mc02.pdf; and Belgian Competition Authority, Beslissing n°
BMA-2015-P/K-27-AUD van 22 september 2015, Zaken nr. MEDE-P/K-13/0012 en CONC-P/K-13/0013,
Stanleybet Belgium NV/Stanley International Betting Ltd en
Sagevas S.A./World Football Association S.P.R.L./Samenwerkende Nevenmaatschappij Belgische PMU S.C.R.L.
t. Nationale Loterij NV, available at http://www.mededinging.be/nl/beslissingen/15-pk-27-nationale-loterij.
11
C. ARGENTON AND J. PRÜFER, "Search Engine Competition with Network Externalities", Journal of Competition
Law and Economics 2012, vol. 8, no. 1, (73), p. 91.
17
WIDER RELEVANCE OF THE ANALYSIS WITH REGARD TO MARKET DEFINITION AND MARKET POWER -
Even though part II focuses on refusals to deal as a specific type of behaviour of dominant firms,
several elements of the analysis have a wider relevance. In particular, the way the relevant
market for data is defined and dominance is assessed in essential facilities cases may illustrate
how a competition analysis of a potential market for data in other abuse and merger cases in the
online environment, as proposed in part I, can be undertaken. After the introduction of the
concept of hypothetical or potential markets by the Court of Justice in IMS Health, it is not
necessary anymore for the application of the essential facilities doctrine that the requested input
is already traded as an independent product by the dominant undertaking. In such cases where
the alleged essential facility has not been marketed before, market definition amounts to a
normative decision about how the market should look and does not reflect ‘real’ supply and
demand of products and services. Such a hypothetical or potential market for data, in essential
facilities as well as in other abuse and merger cases, can be defined by looking at the
substitutability of different types of data and in particular at the functionality which can be
offered with a specific set of data as input. In this way, separate relevant markets can possibly be
defined for offline and online data and, as further sub-segmentations within the latter market, for
search, social network and e-commerce data. As regards market power in data, one needs to find
an objective manner to attribute value to data. The turnover generated by a provider through the
monetisation of data by licensing information to third parties, delivering targeted advertising
services or offering other paid products and services to customers on the basis of the collected
data, may form an indication of its competitive strength in a potential market for a particular type
of data. In the absence of any data-related revenues, potential competition may form an adequate
proxy for dominance in relevant markets defined around data.
WIDER POLICY RELEVANCE OF THE ANALYSIS - The relevance of the analysis relating to the
economic trade-off between competition for and competition in the market also extends beyond
the specific setting of the essential facilities doctrine. One could argue that, to some extent,
competition authorities have to make a choice between encouraging competition for or
18
19
DATA PROTECTION AS A NON-PRICE PARAMETER - When considering whether data protection may
constitute a non-price parameter of competition, it is submitted that a difference should be made
between situations in which data protection forms an isolated aspect of quality and situations in
which data protection correlates with price and other aspects of quality. In the latter case, it is not
desirable to regard data protection as a dimension of quality in competition analysis because a
stronger level of data protection is not necessarily valued by all consumers. This is particularly
the case for online search engines, social networks and e-commerce platforms where the level of
data protection, on the one hand, and the (absence of a) price as well as the relevance and
personalisation of the services, on the other hand, are traded off against each other. Data
protection can still be integrated in competition analysis as a non-price parameter of competition
in these industries by treating it as a form of consumer choice or product variety instead of as a
dimension of quality.
CURRENT RELUCTANCE TOWARDS THE INTEGRATION OF DATA PROTECTION INTERESTS - While data
protection can be integrated as a non-price parameter of competition in the usual competition
analysis if it is a key dimension of competition in the market, a more controversial question is
whether data protection should be protected as a non-efficiency concern under competition law.
Despite calls from data protection advocates for a greater role of data protection considerations
in competition cases, the European Commission and the Court of Justice have so far been
reluctant to integrate data protection into competition analysis as a non-efficiency concern. In
Asnef-Equifax, the Court of Justice stated that issues relating to the sensitivity of personal data
are not a matter for competition law as such. In its Google/DoubleClick and Facebook/WhatsApp
merger decisions, the Commission made clear that its analysis was without prejudice to the
obligations imposed on the parties by data protection legislation and that privacy-related
concerns do not fall within the scope of EU competition law.
20
21
6 Outlook
INCREASING POLITICAL PRESSURE - The fact that the European Commission and the EU Courts
have so far been unwilling to make use of the available means to adequately adapt the
application of competition law to the realities of online and, more generally, dynamic markets is
especially problematic in a time where competition enforcement in this sector is experiencing
increasing political pressure. In the context of the Google investigation, reference can be made to
the resolution on the Digital Single Market that the European Parliament adopted in November
2014 calling upon the Commission ‘to enforce EU competition rules decisively’ and ‘to consider
proposals aimed at unbundling search engines from other commercial services’.12 In addition,
within the framework of the Digital Single Market Strategy of the Commission, the introduction
of regulation for online platforms beyond the application of competition law in specific cases has
been considered.13
ATTENTION FOR POSSIBLE LONG-TERM EFFECTS - Against this background, the need for
competition authorities and courts to use existing competition concepts and tools in a way
conforming to the demands of new market developments seems pressing. More transparency
about how competition law is applied could help making politicians and policymakers aware of
the trade-off that has to be made when deciding whether or not to intervene in a particular
market. Even though regulation may increase competition and innovation in the short term,
possible economic effects on the long term should also be considered. Since politicians and
policymakers are inherently more incentivised to address short term concerns leading to
12
European Parliament resolution of 27 November 2014 on supporting consumer rights in the digital single market,
2014/2973(RSP), par. 15, available at http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-
//EP//TEXT+TA+P8-TA-2014-0071+0+DOC+XML+V0//EN.
13
See the Communication from the Commission to the European Parliament, the Council, the European Economic
and Social Committee and the Committee of the Regions, Online Platforms and the Digital Single Market -
Opportunities and Challenges for Europe, COM(2016) 288 final, 25 May 2016.
22
NEED FOR A BROADER FORM OF PROTECTION - With regard to the integration of data protection
interests in competition cases, it would be beneficial for the democratic legitimacy of
competition enforcement to give more consideration to data protection in competition analysis.
By going beyond strictly protecting economic efficiency concerns, criticisms can be addressed
that competition law ignores other dimensions of consumer welfare. In addition, such an
approach would give consumers a more integrated form of protection in a time where there is a
need for a coherent enforcement of EU law. Competition authorities and courts should be
prepared to tackle mergers and behaviour of market players that transcend narrow relevant
product markets and blur the boundaries between distinct legal fields. A more dynamic
competition analysis and a wider interpretation of the scope of protection offered by the
competition rules is vital to adequately protect the interests of consumers in the digital economy.
23